The Supreme Court of Justice of the Nation (SCJN) made a landmark decision by unanimously approving a rent cap established by the Congress of Mexico City on residential lease increases, restricting them to a maximum of the previous year's inflation rate. This ruling underscores the court's recognition of economic rights while simultaneously addressing the pressing issue of housing accessibility amidst gentrification in Mexico City. The justices acknowledged that while landlords have the right to profit from rent, such profit must remain reasonable and compatible with the rights of individuals who cannot afford to own property.

The decision stems from legal challenges against recent reforms to the Civil Code for the Federal District, amendments that were contested by Urbanhub Mexico SPV5, a real estate firm. This company argued against the reforms that aim to curtail the profit margins of landlords in the face of rising costs of living and significant socio-economic pressures in urban areas. The court's backing of the rent cap is a pivotal move that highlights the balance between private enterprise and the broader public need for affordable housing in a rapidly evolving urban landscape.

As gentrification reshapes neighborhoods in Mexico City, this ruling could have profound implications for tenants and property owners alike. The court’s affirmation of these reforms signals a shift towards more protective measures for renters, aiming to ensure that the right to housing is prioritized over mere profitability. This decision will likely influence future housing policies and set a precedent for how gentrification is managed in metropolitan areas across Mexico.